How to Calculate the Full ROI of Improving Your Fraud Prevention

September 30, 2015

By John Love

As you plan your budget for 2016, you may be considering investing in a fraud prevention upgrade.

Many financial institutions are doing just that — especially in light of increased risk from the vast amount of data in fraudsters’ hands, the proven ineffectiveness of authentication, and the impending availability of same-day ACH, which will further increase fraud risk.

However, many financial institutions make a common mistake when building a business case for investing in improving their ability to mitigate fraud risk: When they calculate the estimated return on investment, they only consider the expected decrease in fraud losses.

If you only consider the reduction in fraud losses, you’ll significantly undervalue what a fraud prevention upgrade will deliver to your financial institution.

As you prioritize investments for 2016, think about what you’d be able to do once you’ve mitigated fraud risk. You could:

And please stop by our kiosk to find out how more than 350 financial institutions — including nearly 100 Digital Insight customers — are using our behavioral analytics solutions to mitigate fraud risk across banking channels and payment types.

Now, I’d like to hear about your financial institution.

What might be the biggest benefit your financial institution would gain by improving its fraud prevention?

John Love is the director of corporate marketing at Guardian Analytics.